Midwestern Art Museum
Midwestern: Contemporary Art Case Study
Negotiations
March 20, 2012
Abstract
Background The present paper reviews a case study as written by Lewicky, Saunders and Barry in the text Negotiations titled Midwestern::Contemporary Art, case number 6. Its focus is on a financial crisis that the museum is facing due to a donors failure to pay a five million dollar pledge. The donor was the museums previous president of the board of directors who had a falling out with the museum director over financial matters and felt minimized by the lack support by board members. The museum is in the process of completing a major capital project and faces the near term possibility of bankruptcy if the pledge is not fulfilled.
Results Legal counsel for the museum recommends suing to collect the funding but that strategy presents several negative outcomes. First is that there are very few cases where a museum has sued a donor successfully so this is not a tested option and even if they were successful, collecting the amount awarded by the court may prove very difficult. Secondly, it raises the likelihood of creating negative public relations that could adversely affect future contributions. Lastly, some of the board members are opposed to this idea. Another course of action is to enter in to negotiations to secure the funding. The current president of the board must decide on a course of action to obtain the necessary funding and unite the board in a functional manner.
Conclusions A renewed focus on the future relationship between this donor and the MCA needs to be forged through skilled negotiations in a way that will benefit everyone involved. The legal route should not be the first course of action for the MCA to obtain the five million dollar pledge. The board should first try to implement a well planned negotiation strategy to include the legal option as the BATNA.
Situation.
The Midwestern Contemporary Art (MCA) Museum opened in 1976 and is devoted to
Negotiations
March 20, 2012
Abstract
Background The present paper reviews a case study as written by Lewicky, Saunders and Barry in the text Negotiations titled Midwestern::Contemporary Art, case number 6. Its focus is on a financial crisis that the museum is facing due to a donors failure to pay a five million dollar pledge. The donor was the museums previous president of the board of directors who had a falling out with the museum director over financial matters and felt minimized by the lack support by board members. The museum is in the process of completing a major capital project and faces the near term possibility of bankruptcy if the pledge is not fulfilled.
Results Legal counsel for the museum recommends suing to collect the funding but that strategy presents several negative outcomes. First is that there are very few cases where a museum has sued a donor successfully so this is not a tested option and even if they were successful, collecting the amount awarded by the court may prove very difficult. Secondly, it raises the likelihood of creating negative public relations that could adversely affect future contributions. Lastly, some of the board members are opposed to this idea. Another course of action is to enter in to negotiations to secure the funding. The current president of the board must decide on a course of action to obtain the necessary funding and unite the board in a functional manner.
Conclusions A renewed focus on the future relationship between this donor and the MCA needs to be forged through skilled negotiations in a way that will benefit everyone involved. The legal route should not be the first course of action for the MCA to obtain the five million dollar pledge. The board should first try to implement a well planned negotiation strategy to include the legal option as the BATNA.
Situation.
The Midwestern Contemporary Art (MCA) Museum opened in 1976 and is devoted to
References: Bulleit, Barbara. Effectively Managing Team Conflict. 2006 http://images.globalknowledge.com/wwwimages/whitepaperpdf/WP_Bulleit Roger Fisher, William Ury. 1991. Getting to Yes. Second edition. p. 98. Roy J Lewicki, David M. Saunders, Bruce Barry. Negotiation. Sixth edition. p. 208 Isabel Phillips. How to Persuade Clients to Negotiate. 2011 http://www.adrtimes.com Andrew Bailey. Ten Negotiating Rules to get more of what you want. 2010 http://www.negotiatingmentor.com